Press Information Bureau

Government of India

Ministry of Finance

04-May-2012 17:04 IST

Use of Existing Infrastructure for Banking Services

Under “Swabhimaan”-the Financial Inclusion Campaign banks had identified approximately 74,000 habitations across the country having a population of over 2,000 for providing banking facilities by March, 2012 through ICT based Business Correspondents Model.

The Reserve Bank of India (RBI) had issued guidelines for engaging of Business Correspondents (BCs) by commercial banks which inter-alia provides that banks may engage individual/ entities as BCs including those operating Common Services Centres (CSC).

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.

SS/SL

Business correspondent model enables banks to use Common Services Centres and existing infrastructure to expand rural banking access. Banks identified rural habitations for delivery of banking services under the Swabhimaan financial inclusion initiative using an ICT-based Business Correspondent model, and the Reserve Bank of India issued guidelines permitting banks to engage individuals and entities, including operators of Common Services Centres, as Business Correspondents to leverage existing infrastructure for expanding banking access.